Dear Sirs,
For Individuals:
1) The 1% monthly penalty for outstanding taxes payable is calculated as per simple interest or compound interest basis?
2) The number of months is calculated from the end of July or March?
Please let me know.
Balaiah
Balaiah (Others) (64 Points)
21 June 2010
Dear Sirs,
For Individuals:
1) The 1% monthly penalty for outstanding taxes payable is calculated as per simple interest or compound interest basis?
2) The number of months is calculated from the end of July or March?
Please let me know.
Balaiah
Rahul Gupta
(Project Controller ACA MBA(Fin.))
(8019 Points)
Replied 21 June 2010
My view is that it is Simple Interest and the penalty will be levied from March.
Rahi Naik
(student)
(180 Points)
Replied 21 June 2010
agree with Rahul...in case of penalty only march while in case of interest that must be last due date of filling return
Giridharan K
(Student)
(123 Points)
Replied 21 June 2010
First of all I divide your question into three sections Viz. 234A, B & C.
234A Starts from August for Individuals
234B starts from April
234C Tax*30*3%+tax*60*3%+tax*1% (Assuming that no advance tax has been paid, if the respective percentages were paid, that part alone can be ignored).
With Regards
Giridharan K
manish
(Article Assitant)
(358 Points)
Replied 22 June 2010
Giridharan K
(Student)
(123 Points)
Replied 22 June 2010
Since this is the hot period of filing returns of indvidual, I construed outstanding taxes as non compliance of payment of advance tax and interest thereon which comes U/s 234B & C. I consider theses 3 sections as brothers and hence i gave formulas for all the three.
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